Small-business loan approvals hit new high at big banks

Small-business loan approvals at big banks hit an all-time high in April, but fell at small banks and credit unions, according to a monthly analysis on Biz2Credit.com.

The approval rate at big banks, those with $10 billion or more in assets, rose to 19.4 percent, from 18.8 percent in March. At small banks, approvals fell to 51.1 percent in April, from 51.6 percent in March. At credit unions, approvals fell to 43.5 percent from 43.6 percent in March.

“In April, small-business owners submit their tax filings, and banks use that data in making their lending decisions,” Biz2Credit CEO Rohit Arora said. “They are able to get money from big banks that offer attractive rates. This is a very strong trend.”

Biz2Credit analyzed 1,000 loan requests ranging from $25,000 to $3 million from companies in business more than two years with an average credit score above 680.